International HRM & Domestic HRM
The Difference between International HRM and Domestic HRM
What is the difference between international HRM and Domestic HRM? Have their same roll they have to perform? Or are are they have same same responsibilities? responsibilities? Difference Difference in function?selection function?selection cretira?and cretira?and problem faces when they are performing at their levels?so we can defined differences as: Nature Difference
International Human resource management is the process of procuring allocating and effectively utilizing the human resources in a multinational corporation or at least three countries. While HR Managers in these organization have to integrate HR policies and practices across a number of subsidiaries spread in several countries so that the organization goals can be achieve at the same time they have to make these policies and and practices practices sufficiently sufficiently flexible to allow significant significant differences differences in these policies in in different countries. International HRM is concerned with identifying and und erstanding how the MNC’s manage their geographically dispersed worked force in order to leverage their HR resources for obtaining local as well as global competitive advantage. Domestic HRM is the process of procuring allocating and effectively utilizing the human resources in local countries. By the name itself, you should already have an idea that IHRMs work internationally or beyond national borders, whereas whereas it’s domestic counterpart works within the set, local, national borders. In this connection, it is also expected that the IHRMs follow not just more rules and regulations but also more stringent international international policies like those related to taxation at the international international location of work, employment protocols, language requirements, and special work permits. For local HRMs, the rules and regulations to be followed are just regarding local taxation and ordinary employment-related issues. 1. An IHRM operates beyond national borders while domestic HRMs operate within the borders. 2. IHRMs have more functions and are subject to more stringent international rules and are more exposed to a wider array of activities as opposed to domestic HRMs. 3. In an IHRM, there’s constant change for a broader set of perspectives. 4. In an IHRM, there’s more attention given to the associ ate or expatriate employee’s personal wellwell being. 5. There are more risks involved in IHRM than in the Domestic HRM. 6. Domestic HRM is done at national level and IHRM is done at international level. 7. Domestic HRM is concerned with managing employees belonging to one nation and IHRM is concerned with managing employees belonging to many nations (Home country, host country and third country employees) 8. Domestic HRM is concerned with managing limited number of HRM activities at national level and IHRM has concerned with managing additional activities such as expatriate management. 9. Domestic HRM is less complicated due to less influence from the external environment. IHRM is very complicated as it is affected heavily by external factors such as cultural distance and institutional institutional factors.
International HRM & Domestic HRM
Function Difference
In our view, the complexity of operating in different countries and employing different national categories of workers is a key variable that differentiates domestic and international HRM, rather than any major differences between the HRM activities performed. Dowling11 argues that the complexity of international HR can be attributed to six factors:
More HR activities.
The need for a broader perspective. More involvement in employees’ personal lives.
Changes in emphasis as the workforce mix of expatriates and locals vary.
Risk exposures.
Broader external influences.
Moderate differences
Many firms underestimate the complexities involved in international operations, and there has been consistent evidence to suggest that business failures in the international arena are often linked to poor management of human resources. In addition to complexity, there are four other variables that moderate (that is, either diminish or accentuate) differences between domestic and international HRM. These four additional moderators are:
The cultural environment.
The industry (or industries) with which the multinational is primarily involved.
The extent of reliance of the multinational on its home-country domestic market.
The attitudes of senior management.
Conclusion:We can say both IHRM and Domestic HRM are performing same function and have same responsibilities but differences are the broader and narrow approaches and level of work and function performs. IHRM have performed on broader level function and domestic HRM have performed on narrow or at local level. Different cultures, languages, selection criteria, level of activities, local polices and rules and regulation as comparison international rules and regulation, risk involvement, external influences and internal influences, different employees selection situations, employees personal lives involvement, that may reasons to create the difference between IHRM and Domestic HRM.
Refferences:International Human Resource Management Centre for Financial and Management Studies, SOAS, University of London First Edition 2008, 2010
